Taylor’s Recommendations for Change

As an outcome of our assessment and findings as detailed in the Current State portion of this document, Taylor recommends review and adoption of the changes noted below in this section. These recommendations are the result of our years of experience in working with some of the largest retailers in North America — helping them advance their marketing, promotional messaging and merchandising efforts. Byer’s should consider:

Assign Ownership and Redefine Roles

This means:

• Byer’s can effectively implement the changes necessary to streamline the creation and execution of monthly pushes and New Store launches

• Clearly defined roles leads to better communication and reduces the likelihood of tasks being dropped

• Assigning responsibility and authority will ensure that team members are held accountable for the roles and tasks they are given

◦ Note: Based on our observations and findings, Taylor recommends that Store Operations be the “owner” of the

Monthly Push process and updating of the New Store Kits. This decision is a Byer’s decision to make. Taylor will support whatever Byer’s should decide in assigning ownership, and in developing and implementing the suggested workflow and related SOPs

Information Gathering and Communication

SKUs:

• By assigning a unique SKU at the start of the request process, the SKU will be attached to that sign from start to finish. There will no longer be a stage in the process where the sign doesn’t have a unique identifier

◦ This creates a process where the communication regarding a sign SKU is fast and clear. Time is no longer lost in the miscommunication regarding a sign

» There is no longer the conversation about:

- What sign type are you referring to (is this the channel sign or the other sign)?

- What version of art (spending hours going back through previous monthly pushes to find that information)?

◦ This process starting at the beginning and being unique will streamline the communication process. Too much time is spent asking clarifying questions because people are not sure which “version” of the SKU or even to what campaign it was assigned

◦ Assigning a unique SKU will remove the standard practice of making sure that the “updated art” SKUs that are produced in monthly pushes are also added to the new store kit

◦ Having a redefined SKU process for signs where multiple personnel can assign SKUs from an approved database will eliminate the single point of failure

• The SKU will be printed on the sign and will allow the stores to easily identify the signs

• This creates a process where there will not be a non-live SKU

Implement DAM (Digital Asset Management) as the single source of truth:

• Art: Having a repository, version control and signs printed with SKUs means:

◦ The art will be easily found, selected and segmented

◦ The art can be stored in the DAM with metadata defined by Byer’s

◦ You will have access to the art that is printed for campaigns

◦ Art can be defined as active or inactive, but still have access to both

◦ Never order the wrong sign again

• Master sign types, signs, SKUs and art will mean:

◦ All of the data will be in a defined place and everyone will know where to look for it

◦ It will remove the multiple lists (new store, active signage guide, etc.) and allow for the data to be output as the user needs

◦ There will be consistent documentation of sign specs to the vendor to make the quoting process faster and less dependent upon the vendor “knowing” what the specs should be

Implement a kitting management solution:

• Automation tool to support, sustain and maintain the kitting workflow and SOPs

• Historical pricing to aid in budgeting and campaign planning

• Setting up a process to account for sign changes via a Kitting Management database for the monthly sign push, which will also drive any changes to new store kits creating a process to ensure accurate maintenance of the kit.

Without technology, there will be a lot of manual work and it will be very difficult, if not impossible, to maintain

New stores:

• Bring New Store kitting master list in line with current Active Signage Guide using a single source of truth

• Moving from parcel (20+ boxes) to LTL (one skid) will:

◦ Create less confusion as to what signs arrived at the store, as they will now all arrive at one time

◦ Reduce the damage that occurs shipping parcel

◦ Reduce the amount of packaging required saves money on materials and reducing time spent in new stores opening boxes

• Assigned SKU and associated processes mean that new stores will no longer be faced with needing signage that they can’t order (non-live SKUs)

• Utilize a Kitting Management solution for automation:

◦ Setting up a process to account for sign changes via a Kitting Management database to automate kit list updates for campaigns and new stores:

» To be managed at the front of the process with less time spent on it

» The kit will not be double the size that the stores need

» Reduces the amount of shipping costs

» Reduces the amount of sign costs

» Reduces the labor to manage the changes

Optimal future state:

• Start to collect attributes of new stores to build the foundation for segmented targeted campaigns

• Deploy a store profiling solution to manage location attributes:

◦ Store size

◦ Windows (number, size, sequence)

◦ Fixtures, displays and end caps

◦ Language preferences

• Create sophisticated segmented campaigns

• Customize/personalize messaging for all locations

• Regionalized variable pricing and promotions

Strategic planning — fixing the above creates the time to:

• Start a monthly push calendar that defines the campaigns for the year

• Reduce the surprise campaigns that happen

• Plan the monthly push quantities to account for new store openings

• If you increase quantities on the monthly push because the item is going into the new store, you will decrease the overall cost per store

• Get control of the inventory that is printed and held

• Provide insight into obsolescence costs

• Establish an environment for continuous improvement

Summary Impacts of Implementing Recommended Changes

Assigning ownership, authority, and documenting redefined roles of the in-store signage process allows for the creation of an effective and efficient workflow that, coupled with the use of enabling technology, will facilitate the ability for growth as Byer’s expands to 3,000 stores in North America.

The establishment of a defined SKU assignment methodology and process will ensure consistency in signage identification, version control, specifications, deployment and replenishment. The resulting benefits will include clearer communications, improved proofing and product identification, reduced errors and waste.

Creating a single source of truth, managed through a structured Digital Asset Management tool, will introduce the capability to have accurate data at your fingertips. This will allow for the business to make faster, more informed decisions than current processes allow. The result for Byer’s will generate the ability to move faster in their goal of following more responsive digital advertising efforts.

Byer’s can also benefit from the creation of templates within the DAM to assist Space Planners in the creation of new signage without having to be print experts. This will increase efficiency and reduce questions and errors arising for omissions further downstream. Space Planners can also benefit from exposure to new concepts and ideas available from Taylor’s Account Management Team and Creative Services group. Through regular Business Reviews, the Store Environment Team and Taylor’s Innovation and R&D Team can share needs and best practices for new messaging tactics.

The Optimal Future state allows for Byer’s to speak directly, effectively and in a timely fashion to your customer. A customer experience with messaging that is more data segmented and personalized will help drive improved revenue per store for Byer’s. This can also improve alignment with Byer’s initiatives in more targeted digital advertising.